Getting a mortgage in Cyprus

• The primary legislation is the Immovable Property (Transfer and Mortgage) Law 9/65.
• Mortgages are registered at the Department of Lands and Surveys (DLS).
• To register a mortgage at the DLS, you must complete form N. 271. The Ministry of Interior website has more details on mortgage registration in Cyprus.
• The Bank of Cyprus is the largest provider of housing loans, with a market share of over 30%.
• As of September 2024, the average mortgage interest rate was 4,53% (source: Central Bank of Cyprus).

To obtain a mortgage in Cyprus, you must be a permanent resident. Non-Cyprus residents are not eligible for a housing loan. Your nationality does not affect the mortgage interest rate, which is, on average, 4,65%.

Non-EU citizens get permanent residence in one of the following ways:

• Permanent employment in Cyprus
• Self-employment. Note that this type has high capital requirements.
• Secure income sources from abroad. The income amount must allow you to support yourself and your family.

The bank needs information concerning the following:

• Identity
• Income
• Contact
• Your professional details
• The property

Income information involves payslips for the last three months and information on any additional income sources. If you are self-employed, you must provide an income tax return form and other relevant documents.

Information about the property will include:

• Title deed
• Planning and building permissions, or applications, if these are pending
• Timetable and cost analysis signed by a professional evaluator or civil engineer
• Architectural plans for the property valuation

Your nationality makes no difference to the mortgage interest rate.

The factors that count when the bank is deciding on the applicable interest rate are:

• Your credit history
• Your contribution
• The loan amount
• The collateral
• Loan duration

Buying property and taking a mortgage are among the major life decisions. Therefore, you must weigh your options and feel comfortable with how you proceed.

To make an informed decision, consider the following:

• Your budget and down payment savings. Financial advisors, CNN reporting and other sources suggest that your monthly housing costs should ideally not exceed 28% of your monthly income. Most banks have a mortgage calculator, which is a good place to start to determine how much mortgage you can afford.
• Educate yourself. Do your research and learn about common mortgage types and loan terms. Be a well-informed borrower.
• Compare mortgage providers. You can check rates, loan terms, down payment requirements, service, lender fees, and closing costs. Ask family and friends for referrals: Forbes magazine says, “Your social network is valuable!”
• Explore the websites of mortgage providers and talk to them in person. Ask questions about their loan products, how they communicate with clients and how they treat clients in your specific circumstances (e.g. the self-employed, the first home borrowers and so on).
• Choose the best mortgage lender for your situation. You must feel comfortable with their terms and confident they will be supportive during the process, says Taylor Stork, Chief Operating Officer of the Developers’ Mortgage Company in the US.

The major banks provide mortgages for residents and expats alike.

Major banks in Cyprus include the following:

• Bank of Cyprus
• Hellenic Bank
• Alpha Bank

You can use a mortgage to buy most property types in Cyprus, including:

• Residential real estate: apartments, houses and villas
• Commercial real estate: office suits, retail units, warehouses and office buildings

Getting a mortgage in Cyprus is a straightforward process in the following steps:

• Calculate your budget and find a property. If you are a non-EU (third-country national), start getting approval from the Council of Ministers for your purchase.
• Visit the bank website and use their online tools.
• Make an appointment with the bank.
• Open a bank account, preferably with the bank that interests you.
• Ask the bank which documents are required (indicative list above) and what other information they need.
• Begin the application process.
• To get a mortgage, you will need life and fire insurance. You can get these from a bank that is different from the one that provides the mortgage.